WELLINGTON TOPICS

Hokitika Guardian, 7 May 1926, Page 4

WELLINGTON TOPICS

POST or PICK SAVINGS BANK

(Special to “ Guardian.”)

WELLINGTON, May 5

The returns of the I’.O. Savings Hank are a fairly good guide as to the thrift of the people. It.is a regrettable fact that during the past five years with one exception, the wilulrawals have exceeded the deposits, thus for the year ended .‘list .March last the deposits amounted to £31,933,001, and the withdrawals to £32,002,-1 ‘O. there was an excess of withdrawals of £830,713, hut for the year ended Hist March. 1-021, the deposits exceeded the withdrawals by C 85.051.

from this it would appear that the people are not so- thrifty as they were and that probably is the ease. Ihe high cost of living probably has some-, thing to do with it., hut the cost of high living is probably more responsible. If we look hack on the figures the returns for the calendar year 1910 shows that the deposits were in excess of the'withdrawals by the substantial sum. of £2.111,01)1. That was-a genuine saving. 111 1019 there was a saving ol £H.700.070. In the five years 101) to 1010 (both ipelnsive) are taken the savings for the period totalled the magnificent sum of £11.033.1i!->. I hose were war savings, for during those five years money was being spent lavishly owing to the exigencies of the war. People now appear to he drawing upon those savings. The Post Office Savings Hank is used to some extent by small traders and to what extent their operations have influenced the volume ol withdrawals it is difficult to say. However, tiie number of depositors tends to increase. and the new accounts would in the main be genuine savings deposits or real efforts at thrift. Those new accounts must, be relatively small, but the fact that the number of depositors is increasing is very encouraging. Ihe amount of credit ol depositors at the end of the year will show considerable expansion because the interest on deposits is now very large. Pints on April Ist, 1025, the total amount at credit of depositors was £ 10.918.028, the interest added to the accounts of the depositors for the preceding year being 0I .(H0.920. Although lor the year jllst closed there was an excess ol withdrawals the interest to be added to the account.-, will approximate to. il not exceed £1,700,000. So that the total of credit to the depositors will show a gain of about a million, sterling. The Private Savings Hanks show better results than the Post Office Savings Hank, for these disclose an excess of deposits of £377,129 for the year ended 31 si March last. In the past six years there was only one occasion when'the withdrawals exceeded the deposits and that was in 1922. The good results shown by the private savings hunks does not mean that they are better managed than the State, but they Certainly attract the really thrifty ill the community. STRIKERS. MON MV AND TRADE. What effect the Labour upheaval in Britain will have upon New Zealand and Australia remains to be seen, but that there will be some serious effect is nertain. The coal strike which has been threatening for many weeks past, but which every one hoped would lie avoided, effected the Stock Exchange and Investment markets of Britain, and has caused money to he more or less tight. Such of the Australian States that have ventured upon the London market for loans have met with chilly receptions, and fresh issues have had to he postponed. The New Zealand Government long ago annoitnred its intention of raising live millions in London, and but for the coal crisis that loan would have been on the market now. The Government, of course, has keen well advised to postpone the issue, and it is doubtful when thgjoan will he floated. The strike must also effect trade. New Zealand's pruduee, like that of other countries catering for British requirements must suffer from the difficulties of (listriluition. for it is obvious that oillv the minimum quantities will he distributed by road, il tin- transport services are involved in the struggle. The tendency '-ill ho for meat, butter, cheese and other commodities to accumulate in cold store, and to slump under pressure of sale when the strike terminates. The export trade of the I’nited Kingdom may he affected, and less merchandise may come to New Zealand, hut that would la- more of an advantage than a disadvantage, because this country is at present over importing.